Corporate Social Responsibility in Commonwealth Bank - Case Study Example

Executive Summary The banking sector all around the world is undergoing changes and banks are looking to strengthen their reforms and monitoring system at the same time ensuring that they are able to satisfy customer. Commonwealth bank has also ensured to bring the necessary changes and ensure that their efficiency in operation improves. The report looks into various aspect of Commonwealth bank by gathering information from their websites and journals which supports the growth of the bank. The report looks into the different issues surrounding Commonwealth bank like convergence, cross promotion, compliance, currency, corporate, and corporate responsibility. The report also looks into the manner the bank has been able to deliver on it. The report thus highlight the area that needs to be worked upon so that Commonwealth bank is able to deliver better services. Content Introduction 3 Purpose of the report 3 Commonwealth Bank 3 Convergence in Commonwealth Bank 4 Cross Promotion in Commonwealth Bank 4 Compliance in Commonwealth Bank 5 Currency in Commonwealth Bank 6 Corporate in Commonwealth Bank 7 Corporate Responsibility in Commonwealth Bank 7 Conclusion 8 References 9 Introduction The banking sector all around the world is undergoing changes and the major factor contributing towards it is the recent financial crisis which has resulted in bank failures. Banks are looking to strengthen their reforms and monitoring system at the same time ensuring that they are able to satisfy customer. Commonwealth bank is an Australian bank which is also looking towards this. The report presents the manner in which the website of Commonwealth bank provides access to important information which can shape the performance of the financial institution. Purpose of the report To identify the different issues surrounding Commonwealth bank like convergence, cross promotion, compliance, currency, corporate, and corporate responsibility. To identify the manner in which Commonwealth bank satisfies the different factors and the way bank manages these vital issues Commonwealth Bank Commonwealth bank is an Australian bank and is ranked second among the banks performing in the country. The strong network and connectivity has ensured that the bank is situated even at the far of places. (Company Website, 2010) The bank being in the service sector has ensured quality in service. For this the bank has a code of conduct which employees need to follow. (Company Website, 2010) Doing so has earned the bank a good reputation and is establishing branches overseas thereby showing the growing popularity and strong reforms followed by the bank. Convergence in Commonwealth Bank Convergence is when two or more development are used together to improve the efficiency of the working environment. In the banking sense it is when technology is integrated with service to ensure higher satisfaction level. Commonwealth bank has ensured a high convergence level. The bank has been able to integrate the different functions to improve efficiency. It is seen from their website that Commonwealth bank has functions where their customers can transfer electronically, check their balances, request for cheque books, and similar other functions. (Company Website, 2010) The integration of technology and better service highlights high congruence achieved by the bank. A study on convergence in banks suggests that “the total productivity factor for banks multiplies when they are able to have convergence in their functions”. (Fung & Cheng, 2010) Commonwealth bank has been able to ensure that their total productivity factor increases and they are able to impart better service. Cross Promotion in Commonwealth Bank Cross promotion holds an importance for very business and so more for the banking sectors. As banks has people from different customs and religion having their accounts it stresses on the fact that banks need to promote cross promotion in their banks for efficient functioning. Commonwealth bank has been able to achieve high cross promotional aspect in their banks. The banks have branches at different places in Australia where the culture are somehow different. (Company Website, 2010) Also the present of employees from varied culture provides the bank with an opportunity to integrate the different culture and have cross promotion in their work. It is also seen that recently Commonwealth Bank acquired stake in Vietnam International Bank. (Dhawan, 2010) This shows the promotion of cross culture across nation. Commonwealth bank has been able to do so and has ensured that cross promotion is high in the bank. Compliance in Commonwealth Bank Compliance to the laws and regulatory framework laid by reserve or central banks form an important aspect in the banking sectors. Banks need to adhere to this and ensure that all possible steps are taken to ensure compliances. This will help to ensure that banks don’t fail and will help banks to render proper services. Commonwealth bank has been able to comply with the compliances laid down by the government. This has been the reason for the success of the bank. Their website demonstrates that the banks have different committee like audit committee, risk management committee, and nomination committee along with other similar committees (Company Website, 2010) which looks into the aspects. This helps to ensure that the bank complies with the requirements. It is also seen that bank has adhered to the Basel II norms and other similar requirements lay down. This is helping the bank and ensuring that it is able to concentrate on delivering services. The financial report also supports this finding in the website as it is seen that their financial reports disclose all material information. (Sample Papers, 2010) In addition to it the stern action and policy of the bank itself ensures that they are able to comply with the different compliances which has been lay down. Currency in Commonwealth Bank Currency holds an important aspect for the banking sector and is the main constituents of bank dealings. It is important that banks are able to provide a varied of services and having currency conversion and other similar phenomenon plays an important role. Commonwealth bank has been able to ensure that they deal in different currencies. The website of the bank also demonstrates the currency conversion feature which will help people visiting different countries as they can convert the money to other currency. At the same time the present of feature like foreign exchange guide and online banking (Company Website, 2010) for the same shows the integration and importance being laid to currency. Corporate in Commonwealth Bank Corporate sector in the banking industry holds importance as they helps banks to create maximum leverage and have a lot many things to offer. Banks lay special attention to ensure that the requirements of the corporate sector are met. Commonwealth bank has been able to ensure special services for the corporate sector. The bank has a section which deals with corporate and ensures that they are dealt properly with. The bank has different features for the corporate sector like special accounts, over draft facilities, salaries account for their employees, and other similar features which helps the corporate sector to achieve extra. (Company Website, 2010) Also, the availability of loans to the corporate easily and special treatment of the sector has ensured that the corporate favor Commonwealth Bank. This has helped to build the reputation of the bank and deliver proper services. Corporate Responsibility in Commonwealth Bank Corporate responsibility is increasing in the banking sectors and banks need to chalk out a plan which will help them to achieve high corporate governance. The banking sectors lays stress on certain issues and by doing so banks are able to deliver better services. Commonwealth bank has been able to ensure proper corporate responsibility by developing its working environment which supports it. The bank has a code of conduct which employee needs to follow while they deal with the customers which will ensure better services. (Sample Paper, 2010) Commonwealth bank has ensured that directors, executives are not allowed to hedge or use their position to influence their decision which could benefit them. (Commonwealth bank, 2002) This shows the importance being laid to governance and ensuring that steps are taken by the bank which will ensure corporate responsibility. A study also highlights that “corporate social responsibility with the stakeholders has to be high in the banking sectors as it could lead towards decision which could affect the growth pattern of an economy”. (Armstrong, Mitchell, Donovan, Sweeny, 2001) Commonwealth bank has ensured it and the code laid down by the bank ensures that all stakeholders are looked after and the bank takes every necessary step to ensure high corporate governance. Conclusion Commonwealth bank thus has been able to deliver on major issues and is taking steps to improve it further. The fact that the bank lays importance to areas which will help them grow and ensure that all issues are dealt with will help the bank to improve their service and ensure that corporate social responsibility is always laid importance to and every step is taken to deliver it. References Armstrong A, Mitchell V, Donovan G, Sweeny M, “Corporate social responsibility”, Journal of Banking & Financial Service, 2001 Commonwealth bank, “Commonwealth Bank Corporate Governance Statement”, 2002, retrieved on October 14, 2010 from http://www.combankltd.com/web/ext/home.nsf/vContentW/About+Us--About+Us!Opendocument Company Website, “Commonwealth Bank”, 2010 retrieved on October 14, 2010 from Dhawan H, “Commonwealth Bank buys stake in Vietnam International Bank”, 2010, retrieved on October 14, 2010 from www.topnews.in Fung M & Cheng A, “Convergence of total productivity among banks”, Global Finance Journal, Volume 21, Issue 2, page 201-210, 2010 Sample Paper, “Commonwealth Bank of Australia”, Harvard Sample Paper, 2010 Read More